Investment Rating - The report maintains a "Buy" rating for the company, with a target price of HKD 12.00, indicating a potential upside of 19.0% from the current price of HKD 10.08 [1][6]. Core Insights - The company's profit performance is in line with expectations, with a year-on-year decline in net profit of 8.7% for the first half of the year, but a recovery is anticipated in the second half due to a low comparative base [1]. - Insurance service revenue increased by 5% year-on-year, primarily driven by a 5% growth in auto insurance, while agricultural insurance saw a decline of 7% [1]. - The combined cost ratio (COR) improved for auto and agricultural insurance, with the overall COR at 96.2%, up 0.4 percentage points year-on-year [1]. - Total investment income decreased by 7.8% year-on-year, but a more stable performance is expected in the second half due to adjustments in asset allocation [1]. - The company announced an interim dividend of HKD 0.208 per share, with a payout ratio of 25% [1]. Financial Overview - For the first half of 2023, the company reported a net profit of RMB 24,585 million, down 8.7% year-on-year, with total investment income of RMB 20,807 million [5][8]. - The projected net profit for 2024 is expected to grow by 7% year-on-year, with earnings per share (EPS) forecasted at RMB 1.19 [4][8]. - The company’s total assets are projected to grow at a rate of 5.2% annually, with insurance service revenue expected to increase by 7.0% in 2024 [9].
中国财险：盈利表现符合预期，下半年盈利增速在低基数上有望继续回升